Nevada: Several New Taxes May Be on the Horizon

Nevada Governor Brian Sandoval (R) has signed two bills that could raise local taxes, and he had indicated he will sign a third. The governor called a special legislative session in order to finish business left undone during the regular session, which concluded June 3.

Sales and Use Tax, Clark County

SB 1 (awaiting the governor’s signature) provides “legislative approval required for an increase in the tax imposed pursuant to the Clark County Sales and Use Tax Act of 2005….” In addition, it provides legislative approval for “an increase… in the rate of the tax imposed … in the amount of not more than fifteen-hundredths of 1 percent, if:

The increase…is enacted by an ordinance approved by a two-thirds majority of the members of the Board of County Commissioners of Clark County;” and

The date on which that increased rate is first imposed is on or after October 1, 2013, but before July 1, 2016.”

The sales and use tax revenue would go towards employing and equipping additional police officers for the following:

Boulder City Police Department;

Henderson Police Department;

Las Vegas Metropolitan Police Department;

Mesquite Police Department; and

North Las Vegas Police Department.

Fuel Taxes

The governor signed AB 413 into law on June 12. It authorizes “certain larger counties to impose additional taxes on fuels for motor vehicles….” Any new county taxes must be approved by a majority of the voters in the county, and any new state taxes must be approved by a majority of voters in the state.

To be eligible to impose the additional taxes, counties must have a population of 700,000 or more. Annual increases in the tax are permitted, so long as they are tied to the rate of inflation.

Sales and Use Tax, Certain Other Counties

Governor Sandoval also signed into law Assembly Bill 46, which authorizes the imposition … “of a new sales and use tax and ad valorem tax in certain counties for the capital projects of the school districts in those counties.” Approval of any such tax is required by a two-thirds vote.

How does your business handle the many sales tax changes that occur throughout the country?

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.